Open Access Original Research Article

Currency Devaluation and Importation of Rice in Nigeria

O. O. Ehinmowo, O. O. Simon–Oke, A. I. Fatuase, A. P. Akinbolasere

Journal of Economics, Management and Trade, Page 1-9
DOI: 10.9734/JEMT/2017/30392

Preference for consumption of imported rice by many Nigerians in the face of unstable exchange rate and currency devaluation, informed the determination of the trend of rice importation and the long run equilibrium relationship between naira devaluation and rice importation in Nigeria. Using time series data between 1980 and 2015, the study employed descriptive; and Co-integration and Vector Error Correction Techniques as analytical tools. The descriptive results showed a decreasing, steady and increasing trend in the value of rice importation into the country; while the results of co-integration and vector error correction confirmed a positive long-run equilibrium relationship between naira devaluation and rice importation, with a significant speed of adjustment and convergence to equilibrium in the long run. The study therefore concluded that naira devaluation with fluctuating exchange rate vis-à-vis other currencies positively determined rice importation during the period under review. That is, despite naira devaluation the quantity of rice imported into the country especially by the rich people who can afford it had tremendously increased.

Open Access Original Research Article

Demographic Determinants of Savings in ECOWAS

Dayo Benedict Olanipekun, Kemi Funlayo Akeju

Journal of Economics, Management and Trade, Page 1-11
DOI: 10.9734/JEMT/2017/33840

Countries in ECOWAS had recorded low savings rate in the last three decades. Savings rate as a percentage of GDP in Mali and Sierra Leone were negative in the period considered in this study. Previous studies mainly focused on the determinants of savings in ECOWAS with little attention on the role of demographic structure. This paper examined the determinants of savings in ECOWAS and the importance of demographic structure in savings rate. Data on gross savings rate, per capita income, interest rate, inflation, financial aids, remittances and population age structure were collected for six ECOWAS countries namely, Cote d’ Ivoire, Ghana, Mali, Niger, Nigeria and Sierra Leone. The data spans from 1981 to 2014. The fixed effect least square dummy variable was used to analyze the data.  Per capita income and real interest rate were found to have statistically significant effect on savings rate. Young age dependency rate and working population rate showed negative effect on savings rate. Although the result of the working population age group is contrary to theory they provided important policy lessons. Economic policies should be directed towards increasing income of the working population age group to increase the saving rate in the region.

Open Access Original Research Article

Channels of Foreign Remittances and their Relative Efficiency in Sylhet Region of Bangladesh

Md. Rashid Ahmed, Jiban Krishna Saha, Md. Shah Alamgir, M. Sayeedul Haque

Journal of Economics, Management and Trade, Page 1-10
DOI: 10.9734/JEMT/2017/33163

The study examines the different channels of receiving foreign remittances and measures their relative efficiency in selected areas of Sylhet region in Bangladesh. The study was carried out based on the primary data collected from eight villages of Sylhet and Moulvibazar districts under Sylhet division. The sample size was 104 considering 52 remittance receiving households from each district by applying random sampling technique. Descriptive statistics and econometric technique were used to analyze the collected data. The study found that about 40% households received foreign remittances through the money transfer agencies, about 35% directly through the bank account and about 19% households received foreign remittances through the mobile banking system. Western Union was the most common channel among money transfer agencies whereas bKash was the mostly used mode among mobile banking system. Hundi still exists but the households were reluctant to disclose the information. The study concluded that money transfer agencies are the most efficient channel of receiving foreign remittances and mobile banking as a channel of receiving foreign remittances is now getting popularity among the households for its easy, convenient and fastest transaction.  

Open Access Original Research Article

Prepotency of Nigerian Securities and Exchange Commission Code of Corporate Governance among Public Companies

G. O. Demaki

Journal of Economics, Management and Trade, Page 1-10
DOI: 10.9734/JEMT/2017/31522

This study empirically examined the prepotency (i.e. superiority at the level of importance) of the regulatory provisions of the Securities and Exchange Commission’s (SEC) Code of Corporate Governance (CCG) for public companies in Nigeria. A stratified random sampling technique was adopted in arriving at a sample size of forty publicly quoted companies in the Nigerian Stock Exchange (NSE). The regulatory provisions of SEC’s CCG that were examined in this study as independent variables include Ownership Concentration, Separation of the Position of Chairman from Chief Executive Officer, Board size and Independent Directors. The proxies for companies’ performance are Profit Margin, Earnings Per Share, Return on Equity, Return on Asset and Tobins Q. Related literatures were reviewed and the Pearson, Kendall and Spearman rho Matrices respectively were employed for the purpose of analysis and estimates. Findings from the comparison of the correlation co-efficients of Pearson’s, Kendall Tau-b’s and Spearman’s rho Matrices rank the SEC code in order of importance as follows: 1st, Ownership Concentration;  2nd, Board size, 3rd Separation of the Position of Chairman from Chief Executive Officer and 4th, Independent Directors. Recommendations include upscaling the SEC Code of Corporate Governance provisions on Board size and separation of the position of Chairman from Chief Executive Officer together with that of Independent Directors to the same level of importance with ownership concentration, for the purpose of risk reduction and foreign capital inflow at the company-level and capital market rebound including the nation’s currency appreciation over the prevailing recession in Nigeria.

Open Access Original Research Article

Cash Management and Performance of Listed Firms in Nigeria

Nwarogu Innocent Augustine, Iormbagah Aondohemba Jacob

Journal of Economics, Management and Trade, Page 1-13
DOI: 10.9734/JEMT/2017/33719

This study is set to examine cash management and performance of listed firms in Nigeria. The study used ex post factor research design, the secondary data gathered were analyzed using descriptive statistics, correlation matrix, and Pool Ordinary Least Square Regression. In the return on assets model, the result shows a significant positive relationship between cash conversion cycle, Cash holding and return on assets of firms while, cash flow and firm size has a negative relationship with the return on assets. In the model of Return on Equity, the variables of firm size, firm growth and cash flow indicated a negative relationship with the variable of firm performance. However, only the variable of firm size showed a significant negative relationship at 5% level with the dependent variable. While, there exist a positive relationship between the variable of Cash Conversion Cycle and Return on Equity. The study recommends that service firms should adopt policies that enables them sell inventories and collect receivables quickly for improved efficiency and corporate solvency.